Ramnarine: T&T Could Be Regional Energy Hub in Decade

• Trinidad and Tobago (T&T) could emerge as a major regional oil and gas processing hub over the next decade, provided it successfully develops new deepwater resources and secures additional Venezuelan gas supplies. Former Energy Minister Kevin Ramnarine identified BP’s Calypso project, Venezuelan gas developments such as Dragon and Loran, and a potential ExxonMobil ultra-deepwater discovery as the key pillars underpinning this opportunity.
• The prospect represents a potential reversal of T&T’s prolonged decline in natural gas production. Gas output has fallen by about 40% from its 2010 peak of 4.3 billion cubic feet per day (bcf/d) to below 2.5 bcf/d. This has contributed to weaker energy-sector Gross Domestic Product (GDP), the closure of industrial plants at Point Lisas and underutilisation of Atlantic LNG. Against this backdrop, the expected start-up of new projects could provide a significant boost to production.
• Manatee is expected to be central to that recovery, with first gas targeted for the fourth quarter of 2027 and production estimated at about 610 million cubic feet per day (mmcf/d), equivalent to roughly 25% of current national output. Together with EOG Resource’s Coconut and BP’s Ginger projects, Manatee could help lift national gas production towards 3 bcf/d in 2027, although the full economic impact is expected to become more evident in 2028.
• Beyond domestic production, Venezuelan gas could further strengthen T&T’s position as a regional processing hub. Projects including Dragon, Loran and potentially Coquina-Manakin could provide additional supplies, while T&T’s existing processing infrastructure and available capacity offer an attractive base for handling Venezuelan gas. This, however, would make the country’s ability to capture the broader economic benefits of these projects increasingly important.
• In this regard, greater local participation could determine how much of the anticipated investment translates into domestic economic activity. Ramps Logistics Limited, executive Javed Razack estimated that T&T could capture US$400–500Mn of the roughly US$2Bn Manatee investment but argued that stronger enforcement of local-content rules is needed to ensure more spending reaches domestic businesses and workers. Such participation could generate wider benefits through employment, taxes, business activity and foreign-exchange earnings.
• Nevertheless, the expected energy revival should not be viewed as an immediate fiscal windfall, highlighting the need for T&T to plan beyond the next gas cycle. Economist Indera Sagewan cautioned that government revenues will initially be constrained as energy companies recover their capital investments, while weaker production in 2026 continues to pressure foreign-exchange earnings and the country’s debt-to-GDP ratio remains elevated at about 84%. Consequently, the country has been urged to use the coming energy upswing to develop new economic sectors and industries that can generate jobs, foreign exchange and government revenue long after its natural gas resources decline.

(Source: Trinidad & Tobago Guardian)